Pass The 65: A PLAIN ENGLISH EXPLANATION TO HELP YOU PASS THE SERIES 65 EXAM - UPDATED FOR 2017

See, our culture is obsessed with tax deferral, but we’ve sort of forgotten that there was already a tax-deferred vehicle available long before IRAs came about. It’s called common stock. If a common stock pays no dividends, you have absolutely nothing to pay tax on until you finally decide to sell it.

If you think a stock is going to sit still or possibly rise, you sell a put.

If your marginal tax rate is 25%, 33%, or 35%, you pay only 15% on qualified dividends. But, check this out—if your tax bracket is lower than 25%, the tax you pay on qualified dividends is zero percent.

Correlation, on the other hand, shows how closely related—or unrelated—two investments are. The correlation coefficient between two investments ranges from 1 to -1. A positive correlation of 1 would indicate that two securities move in lock-step with each other.

remember that if a bond pays a nominal yield/coupon rate of 8%, it will always pay 8% of par or $80 per $1,000 per year. Therefore, whenever interest rates change, they will change the bond's market price—what it could sell for if the investor chose to sell it. When rates on new bonds go up, the existing bond's price will drop. When rates go down,

The following is the actual model rule telling investment advisers, investment adviser representatives, and federal covered advisers what’s what. It is followed by my own plain-English translation of the legalese. These are among the most testable pages of material related to the exam.

The exam might ask about the significance of these various yield-curve conditions.

buy-limit orders and sell-stop orders are placed below the current market price of the stock. As we saw in our discussion of Equity Securities in Chapter 2, stock prices drop by the amount of the dividend on the ex-dividend date. So, both the buy-limit and the sell-stop order would be reduced by the amount of the dividend. Except when they wouldn’t

The owners who provide most of the capital to the business are the limited partners (LPs). They are called “limited partners” because their liability is limited to their investment. If they invest $100,000, then $100,000 is all they can lose as passive investors in the partnership.